The Israeli Supervisor of Banks is in charge of two regulatory goals: Maintaining the stability of the banking system ("prudential regulation") and consumer protection. On the face of it, these two goals are consistent and complete each other. However, in certain situations they may conflict,...

We study the effects of regulatory oversight by the Consumer Financial Protection Bureau (CFPB) on credit supply as well as bank risk-taking, growth, and operating costs. We use a difference-in-differences approach, making use of the fact that banks below a $10 billion size cutoff are exempt...

The 2020 Federal Deposit Insurance Corporation reopening of deposit insurance to industrial loan companies (“ILCs”) threatens to:¶ create risks to financial stability;¶ distort competition in commercial markets;¶ distort competition in banking markets and promote greater risk-taking;¶...

Consumer protection and financial literacy are essential pillars of a well functioning and stable financial system. As the global financial crisis demonstrated, inadequate attention to consumer protection and financial literacy can lead to financial instability. Though Shari'ah principles...

Using a sample of 1,619 commercial banks from 82 countries we investigate the impact of financial consumer protection policies on bank profit efficiency estimated with a production frontier function. Our results show that more regulatory requirements decrease bank profit efficiency. We confirm...

In the aftermath of the global financial crisis the EU bank resolution regime went through fundamental changes that seek to preserve financial stability and ensure continuity of critical functions. The same cannot be said of insolvency rules applicable to non-financial enterprises. Unlike bank...

Dodd-Frank, the US financial reform law passed in response to the 2008 financial crisis, established the Consumer Financial Protection Bureau (CFPB), a new federal regulator with the sole responsibility of protecting consumers from unfair, deceptive, or abusive practices. This decision marked...